SEC releases letter to Musk; holds him accountable for not responding on Twitter deal

SEC has publicly released a letter sent to Elon Musk in June regarding the Twitter deal, the note states that he failed to respond to comments issued to his legal counsel as of the date of the letter.

The letter is dated June 2, 2022 and it’s unclear whether Musk and his legal representatives have since responded to the letter. According to the note, the comment remains “outstanding and unresolved’.

If Musk fails to respond, then SEC will seek to resolve the matter and material outstanding comments and the SEC will complete the review of his filing and disclosure. Additionally, the body may also decide to publicly release correspondence relating to this matter, like the current publicly available letter.

Also Read: Twitter sends legal notice to Musk; calls termination of acquisition invalid & wrongful

The tweet posted by Musk, referring that the Twitter deal cannot move forward has also been mentioned, SEC inquires as the word “cannot” means Musk exercising his legal right to suspend the deal, but his filing was not amended. SEC has requested a written analysis drawing the conclusion as to why the amendment was not required, along with a clear statement as to Musk’s concrete plans for the Twitter deal.

Another communication by Musk via his Twitter feed has been cited to be different from his filing. SEC had informed Musk that his filing must be accurate and represent adequacy for the review of his filings to be complete.